Banks show strength
Canada’s main stock index climbed on Wednesday, supported by banking stocks ahead of a widely expected interest rate hike by the U.S.Federal Reserve.
The S&P/TSX Composite Index gained 48 points to move into Wednesday afternoon at 16,207.50
The Canadian dollar slid 0.06 cents to 77.14 cents.
Shares of Bank of Nova Scotia gathered 52 cents to $77.53, Royal Bank of Canada picked up 51 cents to $104.94, Bank of Montreal grew 92 cents to $108.03, and Canadian Imperial Bank of Commerce perked 65 cents to $123.88.
The top gainers on the TSX were Magna International, which jumped $1.60, or 2.4%, to $69.54, and Dream Office which rose five cents to $24.72.
Pretium Resources fell 38 cents, or 3.6%, the most on the TSX, to $10.18. The second biggest decliner was CES Energy Solutions Corp, with a 2.2% slide, or 10 cents, to $4.41.
The TSX Venture Exchange inched up 0.12 points to 708.80
Eight of the 12 subgroups were higher, led by telecoms, up 1.2%, while consumer discretionary stocks climbed 0.9%, and energy gushed 0.6%.
The four laggards were weighed most by health-care, off 2.2%, gold, skidding 1.1%, and materials, dipping 0.6%.
Stocks rose on Wednesday as investors looked ahead to the Federal Reserve’s latest decision on U.S. monetary policy.
The Dow Jones Industrials held onto gains of 49.27 points midday Wednesday at 26,541.48, led by gains in IBM.
The S&P 500 picked up 7.4 points to 2,923.01, as communication services outperformed.
The NASDAQ vaulted 31.68 points to 8,039.15, as Facebook, Amazon, Netflix and Alphabet all rose.
IBM shares rose 2.5% after analysts at UBS upgraded them to buy from neutral, predicting the company will report better-than-expected earnings next year.
The Fed concludes its two-day monetary-policy meeting later in the day and is scheduled to release its decision at 2 p.m. ET. The central bank is largely expected to raise rates by 25 basis points, marking the eighth time it has tightened policy since 2015.
Investors will also look for clues about future moves on monetary policy, especially those before year-end. Market expectations for a December rate hike were above 80% on Wednesday. The Fed has already hiked rates twice this year.
Prices for the benchmark for the 10-year U.S.Treasury gained ground, lowering yields to 3.09% from Tuesday’s 3.10%. Treasury prices and yields move in opposite directions.
Oil prices dropped 47 cents to $71.81U.S. a barrel.
Gold prices slid $6.50 to $1,198.60U.S. an ounce.
This article provided by NewsEdge.